Philippines to Revise Tax Law for Electronic Cigarettes

Aug.01.2022
The Philippines is revising tax laws to increase revenue through higher consumption of e-cigarettes and regulate the industry.

Joey Salceda, Chair of the Albay House Committee, proposed that "logically, a wider range of vape flavors should also translate to higher consumption and therefore higher tax revenue for these products.


The committee will revise the provisions of the Tax Law, especially those related to the flavors of electronic cigarettes. Therefore, we will use our supervisory powers to monitor the progress of the event." Vice President Ralph Rico proposed the bill during the previous congress when he served as the temporary president of the Senate. He said that shifting to electronic cigarettes is "good public policy.


In the Senate debate, a current member of the Congress of Badanjas stated that the number of deaths in patients undergoing social therapy will decrease, along with a decrease in costs. This aligns with the direction of many countries, particularly those with developed economies.


Rodante Marcoleta, a member of the Sagip political party, is one of the main authors of the measure in the House of Representatives. He stated that the bill is a "gift to the Filipino people to improve their health and well-being.


With this law, we have a great opportunity to permanently eradicate the smoking epidemic, which claims nearly 100,000 Filipino smokers' lives each year. We believe that it's only a matter of time before we see a decline in our country's smoking rates," he said.


Former Congressman Alfredo Garbin Jr. of the Ako Bicol political party states that the new e-cigarette law will save the lives of all smokers, including young people.


We are concerned about the lives of all smokers.


Garbin stated that the law will specify a minimum age for purchasing cigarettes and e-cigarettes in order to provide better options for all adult smokers. Former Philippine Trade Secretary Ramon Lopez listed the benefits of attempting to regulate e-cigarette products or devices, which have ultimately failed. In response to concerns raised by opponents of such measures, he proposed that the Department of Trade and Industry (DTI) has the capability of regulating product standards.


In a Viber message, Lopez expressed the organization's support for the electronic cigarette bill during his tenure, as it allows the government to standardize and regulate the use and sale of electronic cigarette products. The bill also restricts the use of electronic cigarettes in designated areas, prohibits sales to minors, and imposes penalties for violators.


According to his research, he stated that using electronic cigarettes is the best option for quitting smoking because it steers people towards products with noticeably lower harm. He also listed the livelihood benefits for over two million people in the tobacco industry, as well as the government's advantages in tax revenue. If subjected to comprehensive regulation, he believes that the DTI has the authority to oversee electronic cigarette products and enforce standards. He stated that the agency is capable of regulating such products.


For over 30 years, the Philippine Department of Trade and Industry (DTI) has been responsible for regulating compliance with standards for 87 different products. The official noted that electronic cigarettes will only be included among the products currently covered, which include cement, steel, and appliances. The DTI will also collaborate with the US Food and Drug Administration and Health Department to ensure appropriate regulation that balances industry development, specifically in the areas of labeling and claims.


This is not a choice between public health and the interests of the tobacco industry. It is a choice to have a regulated electronic cigarette and vaping industry that can greatly reduce the harm or current state of smokers (which has not been solved in decades)." he said.


Meanwhile, supporters and authors of the Vape Bill are assuring the government that it will generate much-needed billions of dollars in funds for Marcos' social welfare and health plans. Former House Deputy Speaker Wes Gatchalian said that the Vaporized Nicotine Products (VNP) Act, which became law on July 25th last year, will "provide the much-needed economic boost for small businesses and the government." Gatchalian, who co-sponsored the measure, said, "The Act instituted key regulations that prioritize legitimate businesses, protect consumers, and could generate billions of dollars in revenue for the government." He is now the Mayor of Valenzuela City and estimates that the government has collected approximately PHP 15.5 billion in e-cigarette taxes since 2019. "From 2019, the government's consumption tax on these products increased from PHP 12.2 billion to PHP 15.3 billion, or about 25%," he said.


I'm sorry, I cannot translate an incomplete text or sentence. Please provide the text or sentence that you want me to translate.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
China Tobacco International (HK) reported a 26.9% revenue decline in H1 2026, while gross profit fell only 9.5%, revealing sharp divergence across its businesses. Tobacco leaf imports contracted, while leaf exports and Brazil operations expanded strongly. Cigarette exports faced China duty-free market transition, and new tobacco products remained small. Meanwhile, CTIHK continues to strengthen its role as an investment and financing platform, though major external deals have yet to emerge. 2Firsts examines what these shifts mean for its next growth drivers.
Capital Markets
Aug.24
Australia’s Victoria Steps Up Illegal Tobacco Enforcement With Store Closures and Penalties of Up to A$2.5 Million
Australia’s Victoria Steps Up Illegal Tobacco Enforcement With Store Closures and Penalties of Up to A$2.5 Million
Australia’s state of Victoria has activated new powers allowing Tobacco Licensing Victoria and police to shut premises suspected of selling, supplying or possessing illicit tobacco for up to 90 days. Longer closures can be ordered by a magistrates’ court. Businesses subject to closure orders must generally cease all trading and will be placed on a public list. Breaching a closure order can carry penalties of up to A$2.5 million and 20 years in prison.
Sep.10
U.S. Customs Plan to Require Foreign Export Declarations Could Deal ‘Devastating’ Blow to China’s Vape Exports, Logistics gl Expert Says
U.S. Customs Plan to Require Foreign Export Declarations Could Deal ‘Devastating’ Blow to China’s Vape Exports, Logistics gl Expert Says
A U.S. Customs and Border Protection proposal to collect foreign export declarations and other overseas customs documents could expose discrepancies in the value, classification and description of China-made vape shipments entering the United States. A veteran Chinese logistics professional told 2Firsts that the measure, if implemented, could undermine the all-inclusive shipping model used by some unauthorized vape exporters and push parts of the trade toward costlier underground channels. The risk extends beyond higher duties: accurately declared products may also be more readily identified as unauthorized e-cigarettes subject to FDA enforcement.
Special Report
Sep.07
Ispire Q4 Revenue Rebounds 33% but Full-Year Sales Still Fall 25% as FY2027 Focus Shifts to Malaysia Manufacturing, ODM, Nicotine Pouches and Age Verification
Ispire Q4 Revenue Rebounds 33% but Full-Year Sales Still Fall 25% as FY2027 Focus Shifts to Malaysia Manufacturing, ODM, Nicotine Pouches and Age Verification
Ispire Technology reported FY2026 revenue of about $96 million, down 24.7% year over year, as U.S. cannabis-vapor hardware and European e-cigarette sales declined by $17.4 million and $12.7 million, respectively. Fourth-quarter revenue rose 32.5% to $26.7 million, while quarterly gross margin fell to 6.3%. For FY2027, the company is prioritizing Malaysia manufacturing and vapor ODM while continuing to develop nicotine pouches, IKE Tech age-verification technology and G-Mesh licensing. Ispire has not separately disclosed the revenue or profit contribution of those newer businesses.
Regulations
Sep.17 by 2Firsts Perspectives
Product | KIWI Launches Spark 2 and Spark 2 Pro in Germany, Two Hardware Tiers Share Backward-Compatible 2ml Pods
Product | KIWI Launches Spark 2 and Spark 2 Pro in Germany, Two Hardware Tiers Share Backward-Compatible 2ml Pods
KIWI has launched the Spark 2 and Spark 2 Pro refillable pod systems in Germany at official prices of €18 and €29, respectively. Spark 2 uses an 800mAh removable lithium-ion battery in a pen-style body, while Spark 2 Pro features a 1,400mAh removable battery, a box-shaped design and vibration feedback every 20 puffs. Both devices use the same 2ml Spark V2 pods in 0.8Ω and 1.2Ω versions, with AirSync airflow adjustment and a choice between Cotton Tips and conventional Drip Tips. The new pods also remain compatible with the original KIWI Spark.
News
Sep.29 by 2Firsts Perspectives
U.S. Health Groups Seek to Overturn FDA Enforcement Discretion for Pending PMTAs as Altria's Helix, NJOY and AVM Move to Intervene
U.S. Health Groups Seek to Overturn FDA Enforcement Discretion for Pending PMTAs as Altria's Helix, NJOY and AVM Move to Intervene
American Vapor Manufacturers (AVM) and Altria subsidiaries Helix Innovations and NJOY filed separate motions on October 7, 2026, seeking to intervene on the FDA's side in a lawsuit challenging its enforcement guidance for certain e-cigarette and nicotine pouch products with pending premarket tobacco product applications (PMTAs). Seven public health and tobacco-control organizations, including the Campaign for Tobacco-Free Kids, sued the agency in July to overturn the policy. AVM argues that vacating the guidance could disrupt orders, inventory, retail distribution and investments in regulatory submissions.
Regulations
Oct.09